Paper Industry February 2003 News

PAPER INDUSTRY NEWS - FEBRUARY 2003

This page contains pulp and paper industry news for February 2003

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NEWS FEBRUARY 2003

MeadWestvaco to Close Delaware Converting Plant

Feb. 20, 2003 - MeadWestvaco Corp. said that it will close its general consumer packaging operations in Newark, Delaware. The facility converts paper and paperboard into printed packages and is part of MeadWestvaco's packaging segment. The company expects to close the facility by late April 2003.

"Our Newark employees have been dedicated to this operation, and the decision to close this facility was a difficult one," said Rita V. Foley, president of the company's Consumer Packaging Group. "Closing Newark is a result of the continuing evolution of our marketplace, and reflects a decision to focus on higher-margin business in our targeted markets."

This action will result in MeadWestvaco incurring a pretax charge of approximately $6 million. This charge is associated with employee restructuring benefits, asset write-downs and other closure-related expenses.

Approximately 80 people are employed at Newark. Newark was opened as part of the former Westvaco Corporation in 1962, operating within its Consumer Packaging Division. Westvaco and The Mead Corporation merged in 2002 to form MeadWestvaco Corporation.

SOURCE: MeadWestvaco

Potlatch Sells Brainerd Mill for 4.44 Million

Feb. 28, 2003 - Potlatch Corp. said that it has sold its Brainerd, Minnesota, paper mill and related assets to Missota Paper Company LLC for $4.44 million in cash.

The sale follows terms and conditions set forth in a memorandum of understanding signed by Potlatch and Missota in the fourth quarter of 2002.

"Following the closure of the plant in May of 2002, we sought purchasers for the Brainerd operation that had both the interest and ability to continue to operate the Brainerd plant and provide employment for former Potlatch employees," said Potlatch Chairman and Chief Executive Officer L. Pendleton Siegel. "We believe we found such a purchaser in Missota," he said.

According to Dan Alexander, Missota's President and Chief Executive Officer, Missota plans to begin paper production on one paper machine, PM6, on March 12th, and projects that the second paper machine will be brought on line in the third quarter of 2003, based on market demand.

Mr. Alexander indicated that initial employment will be 150, growing to 260 when the mill is in full operation. Missota anticipates that over 90% of their workforce will be former Potlatch employees. Missota's sales office will be in the Chicago area.

SOURCE: Potlatch Corp.